How much does it cost to build a new product prototype?

To build a new product the cost is around 1 million US dollars. If you spend anything below that amount you won't get a quality product anyways. If you want to successfully get investment from VC or PE, this is the minimal cost to spend on your own.

Cost for making a product include the costs of

  1. Assuring quality;

  2. Unique design and name;

  3. Marketing through the channel;

  4. Organize production.

Although it is possible to get a product through the ODM/OEM route, or get a MVP (minimal viable) for just a few thousand dollars, it is not likely to create a long lasting business or a growable business.

The cost of a product is relative to the competition. It will remain roughly the same for anything because you need to beat competition.

A good industry design would take approximately 3 months and 4000 US dollars.

Quality means two things. One is product repeatability of performance, another is defects. Many products are not defective but simply non-repeatable. To get precision engineering of repeatable performance takes 1 year of research by a team of two really highly talented people. Their equivalent salary is around 200,000 dollars, in any country.

There is no shortcuts. You can build a "NEW" thing but there is no buyer. You can build an "Old item" but the competitions have all staked out grounds.


Chicago, IL, USA



T: 224-213-6831

F: 224-213-6888 

© 2020 by SPC